Match the Following Terms with Their Definitions

question 56

Multiple Choice

Match the following terms with their definitions.
-Interest

• A)Year times number of times compounded in one year
• B)Twice a year
• C)Stated rate
• D)True rate of interest
• E)Amount calculated on adjusted principal
• F)Periodically interest is calculated and added to principal
• G)Rate divided by number of times compounded per year
• H)Know future amount looking for present
• I)Four times per year
• J)Twelve times per year

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Definitions:

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.

Optimal Quantity

The quantity that generates the highest possible total profit.

Economic Analysis

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective under the given assumptions and constraints.

Marginal Benefit

The additional benefit obtained from consuming one more unit of a product or service.